Everything You Need to Know About State Laws and Overtime
Being in the business of time tracking, we know how important it is to abide by labor laws. That’s why we make it easy for you to customize your policies with rules that correspond to your circumstances. Whether it be creating policies that work with new sick leave laws or setting up typical policies like a vacation, when it comes to time off, we have you covered.
However, what about overtime? While federal law calculates overtime on a weekly basis, some states calculate overtime on a daily basis. To give a brief overview, according to the federal overtime provisions contained in the Fair Labor Standards Act, overtime is owed when an employee exceeds working 40 hours in a work week. Many employers include other types of hours in their 40-hour calculations, such as holiday, vacation time, and sick day pay. However, this is strictly up to CBA, union agreement, or company policy.
Not all employees are entitled to overtime, but most are. However, many states have their own laws on what constitutes overtime, and not all states operate on a weekly schedule. When this is the case, employees are covered by whichever law is more protective of their rights.
As a helpful resource, we are sharing the following table provided by Employment Law Firms that describes the overtime laws of each state and the covered employers. (For more detail, we’ve hyperlinked each state to its official labor laws page so you can always have the most current information available.) While you probably already know your local rules, you might just learn something new:
|STATE||DAILY OVERTIME?||WEEKLY OVERTIME?||COVERED EMPLOYERS|
|Alaska||Yes, after eight hours||Yes, after 40 hours||Employers with at least four employees; commerce or manufacturing business|
|Arkansas||No||Yes, after 40 hours||Employers with at least four employees|
|California||Yes, after eight hours; after 12 hours, employees earn double time||Yes, after 40 hours. On seventh work day of the week, employees earn regular overtime for the first eight hours, double-time after that|
|Colorado||Yes, after 12 hours (in one workday or 12 consecutive work hours)||Yes, after 40 hours||Retail, service, commercial support service, food and beverage, and health and medical industries|
|Connecticut||No||Yes, after 40 hours. For seventh consecutive workday, restaurant and hotel restaurant employees must be paid time-and-a-half.|
|District of Columbia||No||Yes, after 40 hours|
|Hawaii||No||Yes, after 40 hours. Dairy, sugarcane, and seasonal agricultural workers get overtime after 48 hours.|
|Illinois||No||Yes, after 40 hours||Employers with at least four employees.|
|Indiana||No||Yes, after 40 hours|
|Kansas||No||Yes, after 46 hours|
|Kentucky||No||Yes, after 40 hours|
|Maine||No||Yes, after 40 hours|
|Maryland||No||Yes, after 40 hours. Employees at bowling alleys and residential employees caring for the sick, aged, intellectually disabled, or mentally ill in institutions other than hospitals earn overtime after 48 hours; agricultural workers earn overtime after 60 hours.|
|Massachusetts||No||Yes, after 40 hours. Certain employees entitled to time-and-a-half for working on Sundays.|
|Michigan||No||Yes, after 40 hours||Employers with at least two employees|
|Minnesota||No||Yes, after 48 hours|
|Missouri||No||Yes after 40 hours. Employees of seasonal amusement or recreation businesses earn overtime after 52 hours.|
|Montana||No||Yes, after 40 hours. Students working seasonal jobs at amusement or recreational areas earn overtime after 48 hours.|
|Nevada||Yes, after eight hours, if the employee’s regular rate of pay is less than 1.5 times the minimum wage||Yes, after 40 hours|
|New Hampshire||No||Yes, after 40 hours|
|New Jersey||No||Yes, after 40 hours|
|New Mexico||No||Yes, after 40 hours|
|New York||No||Yes, after 40 for non-residential workers. Residential workers earn overtime after 44 hours.|
|North Carolina||No||Yes, after 40 hours. Employees of seasonal amusement or recreational businesses earn overtime after 45 hours.|
|North Dakota||No||Yes, after 40 hours. Cabdrivers earn overtime after 50 hours.|
|Ohio||No||Yes, after 40 hours||Employers that gross more than $150,000 annually|
|Oregon||No||Yes, after 40 hours|
|Pennsylvania||No||Yes, after 40 hours|
|Rhode Island||No||Yes, after 40 hours|
|Vermont||No||Yes, after 40 hours||Employers with at least two employees|
|Washington||No||Yes, after 40 hours|
|West Virginia||No||Yes, after 40 hours||Employers with at least six employees at one location|
|Wisconsin||No||Yes, after 40 hours||Manufacturing, mechanical, or retail businesses; beauty parlors, laundries, restaurants, hotels; telephone, express, shipping, and transportation companies|
Now that you know your state’s overtime laws, you can easily build an overtime policy according to those rules using FingerCheck. Not only can you set certain conditions for when overtime should calculate, but you can also build as many rules as necessary to abide by your state’s overtime laws. For instance, California employers would need to create a daily overtime rule and a weekly overtime rule that would work together to fully cover their employees. As you can see in the rule box below, every overtime type that exists is listed, and once you finish building a rule you can build a new one.
The rule box also lets you input conditions around which your overtime policy should operate. For instance, you can enter the hours above which overtime should begin to take effect (for instance, for a weekly overtime rule you would write 40) and even set the hours maximum at which overtime should stop accruing. For full details, see our help desk article on how to set up overtime policies.
As you can see, setting up versatile overtime policies that comply with state and federal laws is easy with FingerCheck. Clients can call tech support or use our Help Desk to set up their policies, and businesses new to FingerCheck can sign up for a 30-day free trial.
Table Credit: Employment Law Firms
Image Credit | https://www.flickr.com/photos/herval/385584085